RETIREMENT PLANNING

By Stacey Bumpus

One of the biggest concerns affecting workers today is retirement. Study after study shows that a large number of employees fear there won’t be enough money set aside in Social Security and their personal savings to pay for financial obligations after they’ve stopped working. As a result, many have simply opted to stay at their jobs longer than they ever thought they would.

For retired folks, generating the retirement income necessary to maintain their lifestyle is tricky these days. Because interest rates are so low, most retirees can no longer rely on traditional income-producing investments like CDs and U.S. treasury bonds to grow sufficient cash.

By Casey Bond

Saving for retirement is something a lot of people struggle with, especially now when many 401(k)s are still recovering from the recession and savings account rates can’t even keep up with inflation. The thought of retirement on the horizon is enough to incite panic in many of today’s employed Americans, but there’s another growing issue these workers probably never saw coming: Supporting parents during their retirement.

A new study released by Bank of America Corp. has revealed employers are improving benefits for older workers in order to retain them. More flexible work schedules and improved retirement planning options are being introduced as a way to ensure more experienced employees have a reason to stay.

94 Percent of Employers Want to Keep Older Workers

A new study released by the Employee Benefit Research Institute (EBRI) revealed that many workers will need to work into their 70s or even 80s before having enough money for retirement. According to the study, both Gen Xers and Baby Boomers should prepare themselves for a long work life if they want to cover their basic retirement expenses and health care costs.

The Risk of Running Short of Money High for Earlier Retirees

Retirement is a fearful prospect for nearly nine out of 10 Americans, according to a new public opinion research report released by the National Institute on Retirement Security (NIRS) on Tuesday. The report,”Pensions and Retirement Security 2011: A Roadmap for Policymakers,” found the majority of Americans polled believe the nation’s retirement infrastructure is crumbling and nest egg savings are in danger.

Americans Anxious about Retirement

What would you rather be doing besides planning your retirement? Probably a lot of things, which is likely why this highly important subject of finance often goes neglected. It can be hard to put away money for something that seems so far away, but retirement planning is just as important whether you’re 25 or 55. You should be thinking about your retirement savings strategy and contributing to a fund regularly now.

However, even if you are a diligent saver and are expecting a very comfortable post-career life, know that you may not be in the clear yet. Many people exit the workforce without any clue as to the retirement challenges they’re about to face. If you really want to be ready for the day when you can finally say goodbye to the office, consider the common pitfalls new retirees often deal with so you can be prepared:

There are quite a few financial deadlines to remember over the course of 12 months and it’s probable you’ve missed one or two in the past. Are you familiar with the sense of panic that accompanies waking up on April 15th and realizing you haven’t started your taxes? Did you forget to max out your retirement account contributions last year? If you need some assistance remembering all your important 2011 budget and planning dates, here’s a quarterly calendar to keep you on track.

Q1 2011 (January-March)

Can you imagine living on less than $200 a month for the rest of your life? That’s the reality that many baby boomers are facing as they close in on retirement. According to a study by Wells Fargo, the average retirement savings of the average American in their 50s is $29,000.

That may seem like a decent chunk of change, but if you simply crunch those numbers in a retirement calculator, you’ll find how drastically scary that outlook is. Based on a retirement period of 20 years and a 5 percent return, you’re looking at a monthly allowance of $190 a month. One hundred and ninety dollars a month. For most people, that doesn’t even cover food costs, let alone rent, utilities, clothing and just about anything else that involves any type of lifestyle.

A lack of retirement savings may force many middle-class Americans to cut back their lifestyles later in life, according to a recent study from Wells Fargo & Co. The study revealed the average American has saved less than 7 percent of his or her desired retirement nest egg. As a result, retirees will likely have to keep working into retirement to supplement their income.

Middle Class Falls Short on Retirement Savings